Lack of political will behind weak level of inter-Arab investments, IDB chairman

Chairman of the Islamic Development Bank, Ahmad Mohamed Ali-Madani, said on Monday that the weak level of inter-Arab investments was due to "a lack of political will."

"Several obstacles are behind the development of inter-Arab investments, among others a lack of data on investment opportunities in the region, and of communication means (roads, telecommunications etc)," added Ali-Madani in a press conference, held on the fringes of the Arab Investment Forum.

He called on different bodies in charge of investments realm to provide investors with necessary information on the opportunities offered by their respective countries.

Touching on Morocco's efforts to gain foreign investors, the IDB chairman stressed that the kingdom "is an example to be followed" by other Arab states.

He mentioned, in this regard, the privatization program implemented by Morocco that may well be attractive to Arab investors, as well as the government's endeavours geared toward inducing growth of the tourism sector.

On the Islamic Development Bank investments in Morocco, he said IDB is financing infrastructure projects such as roads and highways, along with economic and social projects related to drinking water and rural electrification.

He further noted that inter-Arab investments amounted to US$ 2.5 billion in 2001, that's 0.3% of the total foreign direct investments.

Saudi Arabia is the first recipient of Arab investments with US$ 721.2 million, that's 29.5 % of inter-Arab investments, followed by Sudan (US$ 554.9 million, 22.7%), Algeria (US$ 350 million, 9.2%), United Arab Emirates (US$ 215 million) and Egypt (US$ 88.2 million).

Saudi Arabia also tops the list of investors in other states of the region with US$ 466.7 million (19.1%), followed by Syria, US$ 466.7 million (12.5%) and UAE with US$ 304.2 million (11.5%).